Recent Senior Care M&A Deals, Week Ending June 16, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Care Investment TrustThe Villages at Palmerton & The Willow$13 million Private developer/operatorShalom Village$16.1 million MIMA Healthcare8 skilled nursing facilitiesN/A MedEquities Realty Trust, Inc.Woodlake at Tolland Nursing & Rehab Center$10... Read More »Blueprint Booms In June
Adam Sherman of Blueprint Healthcare Real Estate Advisors brought several parties together to arrange the capital for a $30 million assisted living/memory care development in Kissimmee, Florida. Located on a 3.4-acre site in the Osceola Corporate Center, a 900+ acre master planned mixed use development, the community will feature 104 units/114 beds of assisted living and 24 private memory care units, in addition to multiple dining venues and amenities. The developer, Providence One Partners, LLC, and the operator, Watercrest Senior Living, expect to open the three-story community by late summer of 2018. Construction began immediately after Mr. Sherman arranged the capital stack, which... Read More »Inspirit In Pennsylvania
Inspirit Senior Living just doubled its portfolio (to four properties), expanded its joint venture partnership with Care Investment Trust and grew its geographic reach with the acquisition of two personal care communities in Pennsylvania. Since being founded in 2015 by Greenfield Senior Living veteran David McHarg, Inspirit has taken a slow and steady approach to its growth, acquiring its first property in November 2016 (a 75-unit assisted living community in Winchester, Virginia for $9.38 million, or $125,070 per unit) and its second in February 2017 (a 120-unit AL/memory care community in Bartlett, Tennessee for $10 million, or $83,330 per unit). The two communities were considered... Read More »
Monticello Finances Massachusetts Portfolio Deal
Monticello Asset Management successfully originated nearly $70 million in bridge-to-HUD financing to facilitate the purchase of a four-property skilled nursing portfolio in Massachusetts. Consisting of 616 total beds (100 of which are for assisted living), the four facilities each average about 70,000 square feet and have an average age over 20 years old. The buying entity’s principals have over 15 years of experience owning and operating SNFs, and they plan to leverage that knowledge to improve operations at the facilities. Monticello, which was founded in 2014 by principals Thomas Lally, Alan Litt and Jonathan Litt, arranged $69.3 million in first lien debt financing to fund the... Read More »Cash Flow Drives Record Skilled Nursing Prices
We have written several times in recent years that reports of the “death of the skilled nursing facility” have been greatly exaggerated. That is clearly evident in the record-high prices we have recorded in the sector, soaring to an average of $99,200 per bed in 2016 (up from the previous record of $85,900 per bed in 2015) and to a median of $94,660 per unit (from $66,500 per bed in 2015), according to the Senior Care Acquisition Report. But this pricing peak contradicts a normally reliable indicator of the market’s health. As we have always stated, it is the absolute level of net operating income (NOI, and interchangeable with EBITDA) that drives value in the market. From 2011 through... Read More »
Brookdale and HCR ManorCare May Deal
Brookdale Senior Living is rumored to be in exclusive talks with a Chinese investor, and Carlyle Group may finally get out of its HCR ManorCare position. A new rumor was out yesterday that China-based Zhonghong Zhuoye Group was in exclusive negotiations with Brookdale Senior Living after making an offer to buy the company for $3.0 billion, apparently higher than other offers. The problem is that the current market cap is just $2.8 billion, so not much of a premium being offered. Apparently, Brookdale wants to be convinced that the U.S. Committee on Foreign Investment in the U.S. would approve the deal as non-threatening to national security. Really? State secrets on maintaining census and... Read More »
Mid-Atlantic Health Care Makes An Exit
Mid-Atlantic Health Care is exiting the skilled nursing market with the sale of its eight remaining facilities in Pennsylvania. The company was still growing its portfolio (which at one point numbered over 20 facilities) as recently as December 2015, so this move, and its sale of 14 skilled nursing facilities late last year, marks a precipitous divestment. Back to the June 2017 deal, while the real estate will continue to be owned and leased by Colony NorthStar (the REIT product of the merger between Colony Capital and NorthStar Asset Management Group), Mid-Atlantic sold the operations to Lakewood, New Jersey-based Mima Healthcare. Five of the facilities are located in Philadelphia (three... Read More »
Trilogy Health Services Makes It 11 In Michigan
Trilogy Health Services, better known on the development side of the skilled nursing sector, recently bought a facility in Grand Rapids, Michigan, making it the 11th facility in Trilogy’s Michigan portfolio, and 108th property overall. The facility was built in 1976 and features 60 beds. There is also an adjacent independent living/assisted living community that was not included in the sale. Trilogy has been growing at an incredibly fast pace. In the last year, the operator has opened six healthcare campuses in Indiana, two in Ohio, two in Michigan and one in Kentucky. We have to imagine these developments, particularly the new skilled nursing beds, stand out among the existing supply in... Read More »Gross Income Multiple Falls For Seniors Housing Deals
A popular multiple that investors use to measure the value of a seniors housing and care property is the Gross Income Multiple (GIM). So, as prices have stayed consistently near record-highs for seniors housing (independent living and assisted living) properties, how much were buyers paying with respect to the properties’ revenues? In 2016, according to the 22nd Edition of The Senior Care Acquisition Report, the average GIM fell 15 basis points to 3.75x from the 3.9x recorded in both 2014 and 2015, widely considered the height of the seniors housing bull market. The median fell by a larger degree (30 basis points) and to a level not seen since 2011, when it was also 3.2x. Understandably,... Read More »Recent Senior Care M&A Deals, Week Ending June 9, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Granite Investment GroupTabor Crest Memory CareN/A CareTrust REIT, Inc.The Rio at Cabezon & The Rio at Fox Hollow$27.3 million National Health Investors, Inc.Assisted Living Community$10.4 million Hernandez Family VenturesPointe North Gables$7.8... Read More »Schedule a demo
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